Page:United States Statutes at Large Volume 95.djvu/144

 95 STAT. 118

PUBLIC LAW 9 7 - 2 1 - J U L Y 9, 1981 ARTICLE XL TAXATION AND FINANCE TAX AUTHORITY

48 USC 1541 ^°^-

1. All taxes shall be levied by law, and the Senate may not surrender, suspend, or contract away its power to initiate tax legislation except as provided by this Constitution. A tax may be levied or an appropriation of public money made only for a public purpose, SECTION

INCOME TAX

48 USC 1541 ^°^-

2. Laws shall be enacted to administer and enforce the income tax and the Federal tax laws applicable to the Virgin Islands. SECTION

PUBLIC DEBT LIMITATION

48 USC 1541 "°*^®

3. (a) The Senate by law may cause bonds or other obligations to be issued on behalf of the Government either for (i) a public improvement or public undertaking or (ii) other projects nominally and/or beneficially privately owned which will promote the public interest through economic development. Such bonds or obligations shall be payable solely from the revenues directly derived from and attributable to such public improvement, public undertaking, or other project. Such bonds shall not constitute a general obligation of the Virgin Islands or of the United States. (b) The Senate, as authorized by law, may cause to be issued such negotiable general obligation bonds or other evidence of indebtedness as it may deem necessary and advisable to achieve or further a public purpose: Provided, That no public indebtedness of the Virgin Islands shall be incurred in excess of 10 percent of the assessed valuation of the taxable real property in the Virgin Islands. (c) Bonds issued pursuant to this section may bear such dates, may be in such denominations, may mature in such amounts and at such time or times, not exceeding thirty years from the date thereof, may be payable at such place or places, may be sold at either public or private sale, may be redeemable (either with or without premium) or nonredeemable, may carry such registration privileges as to either principal and interest, or principal only, and may be executed by such officers and in such manner as shall be provided by law. In case any of the officers whose signatures appear on the bonds or coupons shall cease to be such officers before delivery of such bonds, such signature, whether manual or facsimile, shall nevertheless be valid and sufficient for all purposes, the same as if such officers had remained in office until such delivery. The bonds so issued shall bear interest at a rate not to exceed that specified by law and be payable at such time or times specified by law. All such bonds shall be sold for not less than the principal amount thereof plus accrued interest. All bonds issued by the Government of the Virgin Islands, specifically including interest thereon, shall be exempt from taxation by the Government of the United States; by the Government of the Virgin Islands or any political subdivision thereof; by any State, territory or possession or any political subdivision thereof, or by the District of Columbia. (d) The proceeds of the bond issue or other obligation herein authorized shall be expended only for public purposes as set forth in this section or for the reduction of the debt created by such bond issue or obligation. SECTION

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